Jeff Snowden
Jeff Snowden is the President of Aero-Space Reports, Inc., an industry leading aircraft title and escrow company based in Oklahoma City, Oklahoma. On a day-to-day basis, his primary function is to act as an Escrow Agent for trusted brokers, attorneys, financing companies and individual buyers/sellers. He prides himself on his ability to ebb and flow with each transaction based on the deal particulars, the parties involved and the circumstances surrounding the closing. Jeff is a member of International Aircraft Dealers Association (IADA), National Aircraft Finance Association (NAFA), National Business Aviation Association (NBAA) and Aircraft Owners and Pilots Association (AOPA).
FAA Registry: New Procedural Changes Impacting Transactions
The FAA Registry recently implemented procedural changes affecting document access and transaction timelines. Learn how these updates impact closings and title work.
Recent FAA Registry changes are causing shifts in the way title/escrow agents are handling aircraft transactions. While some updates enhance efficiency, others create delays.
Here’s what these changes mean for those involved in closings:
Addressing Privacy Concerns
In December 2023, you may recall that the FAA removed access to Ancillary Documents, citing privacy concerns over Personally Identifiable Information (PII). This includes details like Social Security numbers, driver’s licenses, and loan numbers. The change restricted access to critical documents such as LLC Statements, Powers of Attorney, and Trust Agreements. This created challenges for the industry, making it harder to properly vet information for closing documents. Thankfully, escrow companies and law firms stepped in to push for change.
New “Work in Progress” Classification
Fast forward to December 2024, the FAA introduced another procedural change in the name of privacy. Now, any document filed but not yet recorded is classified as “Work in Progress” (WIP). Again, the idea is that the general public should not be able to view documents until an FAA examiner has reviewed the document for PII.
The downside though is that there’s now a delay in being able to see those documents. We all know how quickly aircraft transactions can move, and a key component is running title work. In the past, there was immediate access to these documents which allowed you to plan and run complete title work. As it stands now, we can tell when documents have been filed, but we’re delayed in viewing them.
While the intent is understandable, the delay in document access is impacting closings and transaction efficiency.
New Digital Registration Cards
For all of the negative changes, the FAA is making some positive ones. For example, they’re issuing digital registration cards. We probably get 7-10 emails a week of “I lost my hard card, can you order a new one?” Or “We’re supposed to leave tomorrow morning and we still don’t have our registration card.” In theory, these new digital cards should reduce lost card issues and expedite access for operators needing immediate documentation.
More FAA Examiners
Another positive note is that the FAA has hired more examiners and they’re doing a good job of keeping up with the backlog. I don’t envision us ever seeing the 10-12 backlog that we saw during the COVID years.
Communication
The biggest challenge remains the FAA’s lack of communication. These policy changes, good or bad, are always just rolled out without discussion. The industry is rarely consulted before these changes take effect.
If given the opportunity, aviation professionals could provide insight into the real-world impact of new policies. While we can’t control these shifts, we must remain adaptable as the FAA continues making changes—both good and bad.
Streamlining Year-End Aircraft Transactions for Smoother Closings
Q4 aircraft transaction activity is picking up faster than expected. Escrow Agent Jeff Snowden explains why clear communication and being proactive with title work and International Registry enrollment will ensure smoother closings.
When it comes to aircraft transactions, 2024 has been slower overall. Per last month’s article, I wasn’t sure if we’d see the usual year-end madness. Fast forward, and our title activity has clearly picked up—more than I expected.
We often discuss how election years cause a dip in activity, but that isn’t always true. According to this Corporate Jet Investor article, “During the past eight presidential elections, the total number of transactions (for both pre-owned and new deliveries) have only declined twice.”
Aircraft transactions don’t disappear—they just delay. With only six weeks left in the year, here are some helpful tips from an Escrow Agent to make year-end closings smoother.
Preparing for Year-End Aircraft Transactions
If you’re a broker or dealer with listings, work with your preferred title company now to order title work. Deals move quickly this time of year, and buyers or sellers often want to close unexpectedly fast. Ordering title work early ensures you address any potential issues before closing.
For clients financing their aircraft, complete International Registry enrollments early. The year-end activity surge means processing these applications can take longer. Some proactive clients enroll on the International Registry well before finding an aircraft. While it may seem minor, having this step done provides peace of mind once a deal progresses.
Once a plane is under contract, your Escrow Agent will prioritize based on the closing date you provide. We aim to stay proactive, but year-end timelines make this challenging. If you open a transaction without confirming a closing date, we likely won’t prioritize your deal until the date is set. Providing a clear closing date helps us ensure everything aligns.
For teams with Closing Coordinators or Transaction Managers, salespeople need to keep them updated. These coordinators are the communication link to your Escrow Agent. If they lack information, they can’t keep us informed, which slows the process.
I love the year-end rush, but it presents challenges. Unexpected deals will surface, and existing deal details may shift by the hour. Buyers or sellers can back out, and financing may fall through.
There are many factors we cannot control. However, we must focus on controlling what we can. With that mindset, I’m excited about the activity increase and hope everyone ends the year strong.
Aircraft Escrow Closings Slowing Down for 2024?
Aircraft escrow closings in 2024 have been unpredictable, with longer-than-expected timelines and mixed activity levels. Learn what this could mean for year-end closings.
How will the aircraft escrow market end up in 2024? Let’s look to the past for clues as to what year-end may look like.
From 2020-2023, the volume of escrow closings was extremely high. So much so that it seemed like I didn’t even have the time for those brief moments of reflection. We were busy along with the rest of the industry. I knew the end of those years was going to be active. After all, Q4 is when most brokers experience their highest sales.
But fast forward to 2024, and so far, the year has been a bit of a mixed bag.
As you likely know, our business relies on repeat clients, most of whom are brokers, dealers, attorneys, and individual buyers/sellers. Of this group, there are clients who were just as active as any other year. But there are many that I’ve not heard from as much.
Based on conversations with aircraft brokers, I think there’s been a conscious decision to take a step back and catch their breath. For others, I think they’re doing what they can, but the activity hasn’t been as high this year.
Case in point: We’re seeing deals that were meant to be financed, and then at some point, the financing fell apart and the deal canceled. The lower deal flow indicates that we’re still facing supply chain issues. Plus, we continue to hear comments such as, “We’re still waiting on a part” or “We’re still unsure of the return to service (RTS) date.”
For every straightforward closing, there seem to be 2-3 clients with a last-second issue (e.g., a holdback or addendum). Unfortunately, everything this year has just seemed harder than it needs to be. Without a doubt, I’d say 2024 has been the most challenging year to get aircraft escrow deals across the finish line. I’ve tried to make sense of it, but everyone I talk to has a hard time identifying the “why” as well.
My crystal ball for the year end is foggy. As I mentioned above, 2024 is turning out to be a mixed bag. Some dealmakers will continue to thrive, and some will continue to be slow.
What we’ve learned from the business surge of 2020-2023 is that this level of growth isn’t sustainable. This year may just be a healthy correction, setting the stage for a brighter future.
Here at Aero-Space Reports, I’m grateful to report that our year has been strong, and we’re on pace for another year of growth. When it comes to the future, I’ll always choose optimism and look forward to ending on a high note.
About the Author:
Jeff Snowden is the President of Aero-Space Reports, Inc., an industry-leading aircraft escrow and title company based in Oklahoma City, Oklahoma. On a day-to-day basis, his primary function is to act as an Escrow Agent for trusted brokers, attorneys, financing companies, and individual buyers/sellers. He prides himself on his ability to ebb and flow with each transaction based on the deal particulars, the parties involved, and the circumstances surrounding the closing. Jeff is a member of International Aircraft Dealers Association (IADA), National Aircraft Finance Association (NAFA), National Business Aviation Association (NBAA), and Aircraft Owners and Pilots Association (AOPA).